Take olive oil and onion in a pot. Saute over medium heat for about 2-3 minutes. Stir in peppers and saute for additional 2-3 minutes. Add tomatoes and cook over medium heat until they get soft, stirring occasionally.

Stir in hot water and bring to a boil. And then, add rice, salt and sugar. Cover and simmer over low heat until the rice is cooked.

Let it rest for 10-15 minutes before serving. Garnish either with fresh basil leaves or dill.